Frequent Causes for PSARA License Rejection & Strategies to Prevent Them

The PSARA registration plays a vital role for the private security agencies. The license grants the official authorization to the security agencies under the Private Security Agencies (Regulations) Act, 2005. Through registration, the agencies are eligible to provide security services for guards, bouncers, and officers. The registration is a legal formality. However, the increasing number of PSARA license rejections is impacting the business operation. This blog will discuss the primary causes of license rejections and how to prevent them.

1. Understanding the PSARA License Approval Process

The security agency registration process is straightforward, including documentation, police verification, and review by the state authorities. Clarification of the registration process:

• The agency must ensure that it aligns with all requirements for the license.

• Prepare all necessary documents, including information about the employee and directors.

• Get the MOU with the training institute.

• Fill out the information in Form-1 and submit it to the relevant state authority either online or offline.

• For the background checks, the agency will conduct the police verification. 

• The state’s controlling authority will issue the PSARA license. 

Note: Accuracy and completeness of the documents are vital throughout the registration process. A minor error or missing document can cause license rejection. 

2.  Common Causes for PSARA License Rejection

For the successful security license registration, the applicant’s information must be right and consistent with all other certificates. The license approval doesn’t depend on a single requirement. Meanwhile, the common causes of PSARA license rejection include:

• Criminal Background and Misconduct: Any applicant, director, or partner who doesn’t have a clean criminal record is not qualified for the PSARA registration. If it is convicted of the crime with a minimum punishment of 2 years, it is disqualified. If an individual is dismissed by the government for any service, they will also not be able to apply.
• Link to Banned Organization: The applicant is not eligible to apply for the security license if it is connected to any banned organization or activity that can impact national security norms.
• Non-Indian citizenship: A physical company registration is mandatory in India. If the director, partner, or shareholder is not Indian, the application will be rejected.
• Incorrect or Incomplete Documents: Incomplete documents are the major reason for the application rejection. The authority rejects the approval due to the lack of police verification reports, address, and identity proof, and financial instability.
• Wrong or Missing Information: If the checking authority finds the wrong or illegible details on the application form, it directly rejects the application. Having the MOU with the training institution is mandatory. If it is not, you cannot apply for a security registration license.
• Inadequate Business Structure: The deficient location caused the license rejection. For the fast PSARA license approval, the fit business premises are vital. 
• Poor Police Verification: Not staying compliant during the police verification or having the wrong documents causes delays or application rejection.
• Not Financially Stable: Being financially stable is crucial. Having clear records of bankruptcy or insolvency can cause license rejection. Financial stability is crucial, as the agency is required to pay capital for equipment, training, and salaries. 

3. How to Avoid PSARA License Rejection?

The license rejection challenges can be avoided by understanding the eligibility requirements, adhering to the PSARA Act, and much more. By adopting the strategies, the applicant can get the license faster:

Verify Eligibility & Background Checks

Must ensure your business will be registered either as an LLP, a company or etc. The security company’s directors/partners and other members must be Indian citizens and meet the age requirement (between 18 and 65 years old). The personnel and directors must have clean criminal records. Complete the background checks to verify that they will not be dismissed from government services for any misconduct.

Sufficient Financial Resources & Mandatory training

To manage the operation, be ready to invest in expenses and pay the staff’s salaries on time. For the proof, it must contain the ITR copies for directors. Establish a training center to provide security training. Otherwise, you can register the Memorandum of Understanding (MoU) with a security training institute before applying for the PSARA license.

Application Process Strategies & Checklists

A single piece of missing or inaccurate information on the documents can lead to rejection. To avoid it, you must ensure you have all the complete and signed documents. The paperwork needed is precise:

• Certificate of Incorporation
• Identity and address proof
•  ID proofs of partners/directors or shareholders
• GST, PF/ESI registration, 
• ITRs, affidavits
• MoU (Memorandum of Understanding)

For instance, you have to check the completeness and accuracy during the registration procedure. Verify that they are readable, clear, and formatted correctly.

Correct Application Process & State-specific Laws

Go through the state’s controlling authority regulations. Register for the license in the prescribed format (Form I, Form II for antecedents verification, and Form III affidavit). Submit the application process by using the state’s regulatory authority online portal. Be aware of the central and specific set of rules & regulations. Get the information regarding the state’s specific PSARA license validity, documentation, and other requirements. 

Maintain Records & Appoint Supervisor

The registers of the agency must be maintained and contain all information about security personnel, training, and clients. The police inspection reports must also be accurate. To maintain adequate agency, it must appoint an experienced supervisor. For the 15 guards, there must be one supervisor. 

Apply for Renewal On-Time

The PSARA certificate is valid only for five years, but in some states, its validity timeline is different (between one and five years). The PSARA license renewal application should be submitted at least ninety days before the current one. 

4. Final Discussion |  Avoid PSARA License Rejection with License Agent

The error during the documentation raises significant challenges. The incomplete or unclear documents are the key reasons for PSARA license rejection. However, you will save important time and resources by being aware of the reasons behind the license rejections. By going through the common causes, the applicants can make a robust, compliant application, which saves significant time, effort, and financial resources. These reinforce compliance practices, make the PSARA license approval quick and smooth. To guarantee your security license on the first attempt, consult a PSARA license agent or visit the LegalRaasta.com website. 

5. Got Questions? Read the Below Mentioned FAQs

(1) For which PSARA Act, 2005, was implemented?

Ans. In order to regulate private security firms in India, the Indian government passed the PSARA Act in 2005.

(2) What is the security license registration cost for an entire state?

Ans. An applicant must pay Rs 25,000 in order to regulate the security agency throughout the entire state. But the price varies by state.

For example, in Karnataka, it can range up to Rs 2.5 lakhs.

(3) What does the PSARA license stand for?

Ans. PSARA refers to the “Private Security Agencies Regulations Act “.

(4) Is the PSARA license also for government security guard training?”

Ans. No, it is not required to provide the training for government security guards. But it is compulsory for private security agencies that want to operate legally in India.

(5) How to apply for the private security license in UP?

Ans. To get the license in Uttar Pradesh, register with UP’s security license controlling authority.